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Sandy Beach purchased an investmentcontract on January 1, 2005 by paying $28,795. The investmentcontract will pay Sandy $5,000 at the end of every year for a set number ofyears. Assuming the contract pays interest of 10% compounded annually, how many payments of $5,000 will Sandyreceive?
Use the time value of money factors posted on carmen to answer this question. To access these factors, click on content and then scroll to the bottom and click on the link labeled time value of money table factors.
(a) 5 payments
(b) 6 payments
(c) 7 payments
(d) 8 payments
(e) 9 payments
(f) unable to determine from theinformation given
which accounting process is the recognition or non-recognition of business activities as accountable events?
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